Navistar agreed to pay a civil penalty of $52 million and to prevent at least 10,000 tons of oxides of nitrogen (NOx) emissions to resolve its violations of the Clean Air Act (CAA).

In July 2015, the United States government through the Department of Justice (DOJ) filed a lawsuit against Navistar. The federal government alleged that the company illegally introduced approximately  7,749 heavy-duty diesel engines (HDDEs) that were not covered by the certificate of conformity issued by the Environmental Protection Agency (EPA) and did not meet emission standards.

Additionally, the U.S. government also alleged that Navistar marketed and sold those HDDEs installed in its branded International trucks as EPA-certified model year 2009. In fact, Navistar completed manufacturing and assembling those HDDEs in 2010.

Those HDDEs were actually model year 2010 and must have an EPA-issued certificate of conformity showing compliance with the 2010 emissions standards. Navistar violated the CAA for selling those engines that did not meet 2010 emissions standards, according to the Justice Department.

In the first phase of the litigation, the U.S. District Court for the Northern District of Illinois ruled that Navistar was liable for its alleged violations of the CAA.

Navistar negotiated and reached a settlement with the U.S. government in the second phase of the litigation in which the company is facing an imminent trial on remedies to its violations. It took more than six years of prosecution before the parties reach a settlement agreement on the matter.

Under the Consent Decree, Navistar is required to acquire older, high-polluting HDDEs from the used HDDE market. The company must destroy enough number of those engines to result in at least 10,000 tons of NO_x emissions reduction.

In addition, the company must structure its mitigation of NO_x emissions through one or more projects approved by the EPA, which considers geographic diversity and benefits to communities suffering from air pollution.

The settlement with Navistar will protect communities overburdened by air pollution

In a statement, DOJ's Environment and Natural Resources Division Assistant Attorney General Todd Kim said, “This settlement shows we will hold companies accountable when they skirt the law to gain an advantage at the expense of public health. The department’s steadfast pursuit of this case achieved a just result, including that the company must mitigate the harm it caused and, in doing so, specifically must consider assisting communities overburdened by pollution.”

On the other hand, EPA’s Office of Enforcement and Compliance Assurance Acting Assistant Administrator Larry Starfield commented, “Older diesel engines without modern emissions controls emit significant amounts of air pollution that harm people’s health and take years off people’s lives. This harm is greatest in communities near busy roadways, which are too often overburdened by high levels of ozone and particulate matter pollution. Today’s settlement will protect these vulnerable communities..."

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